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Japan Firms Slash Spending

Business Investment Slid in First Period, but Worst May Be Over

By

Andrew Monahan

Updated June 5, 2009 12:01 a.m. ET

TOKYO -- Japanese capital investment fell at its sharpest rate on record in the first quarter, government data showed, as recession-stricken manufacturers continued to slash spending, though signs have emerged that corporate conditions have improved recently.

Business investment plunged by 25.3% during the January-March period, the fastest pace since comparable data became available in mid-2002, the Ministry of Finance's quarterly survey of corporations' financial statistics showed.

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